Technology is exacerbating unemployment and wage stagnation – and it’s set to only get worse

The population must now confront a sharp decline in living standards, driven by globalisation, technology and changes in the structure of the work force

For most people, a secure, fairly paid job is the difference between a reasonable life and destitution. Today changes in the structure of the work force make this objective increasingly elusive.

Technology exacerbated declines in employment and incomes by eliminating certain tasks and deskilling many jobs. Robotics and complex computerised equipment successfully replaced often skilled labour. Computer software is now replacing journalists being able to synthesise news items electronically by crawling the worldwide web. Even traders in financial markets are being replaced by automated algorithms.

In the late 20th century, global supply chains let lower paid workers displace expensive counterparts in more developed countries. Initially, this occurred in manufacturing industries requiring limited skills. Over time, it encompassed more skilled jobs, spreading to services and professional work.